Question: 0 Manipulating CAPM Use the basic equation for the capital asset pricing model (CAPM) to work each of the following problems. a. Find the required
0 Manipulating CAPM Use the basic equation for the capital asset pricing model (CAPM) to work each of the following problems. a. Find the required return for an asset with a beta of 0.75 when the risk-free rate and market return are 7% and 9%, respectively. b. Find the risk-free rate for a firm with a required return of 7.972% and a beta of 0.58 when the market return is 11%. c. Find the market return for an asset with a required return of 21.603% and a beta of 1.98 when the risk-free rate is 8%. d. Find the beta for an asset with a required return of 13.928% when the risk-free rate and market return are 8% and 13.7%, respectively. a. The required return for an asset with a beta of 0.75 when the risk-free rate and market return are 7% and 9%, respectively, is %. (Round to two decimal places.) b. The risk-free rate for a firm with a required return of 7.972% and a beta of 0.58 when the market return is 11% is %. (Round to two decimal places.) c. The market return for an asset with a required return of 21.603% and a beta of 1.98 when the risk-free rate is 8% is %. (Round to two decimal places.) d. The beta for an asset with a required return of 13.928% when the risk-free rate and market return are 8% and 13.7%, respectively, is (Round to two decimal places.)
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